Prime Consideration before Applying a Loan

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1. Remember to always borrow in a responsible manner. Never borrow more than you can repay.
2. Indulge in some serious shopping to seek the best rates for personal loans. By comparing the best rates for personal loans and for unsecured personal loans, you would get a comprehensive idea of the choices offered to you, before you sign the credit agreement.
3. Always remember to read the small print, before you actually take the step to sign on the dotted line. Whether you are opting for a personal loan , or a secured loan, and are actively seeking unsecured personal loan best rates, or the best rates for personal loans, please do check first if there are provisions for :
   • An early repayment fee where a redemption fee is charged if you repay your loan before the end of its term ( sometimes the fee could be as much as two month's interest, which would considerably add to the cost of your personal loan )
   • An arrangement fee for purposes of setting up your loan.
   • For a break or deferment period where you are exempt from making the repayment for a specific period of time on account of some difficulty in repayment. However the interest accrued during this break period is still payable, and could be added to your outstanding loan balance.

What is the Difference between a Personal and Secured Loan?

Personal Loan

• Your loan is based on your personal credit worthiness.
• The maximum time for repayment of your loan extends up to a period of ten years
• You are entitled to a loan of a maximum amount of 25,000 pounds.

Secured Loans

• You would have to use your property or fixed asset as a security against your loan. Should you default on repayments, you stand to lose your home.
• The maximum time for repayment of your loan extends up to a period of 25 years.
• You could apply for a loan of more than 25,000 pounds, depending upon the discretion of the lenders.

While applying for a loan, personal or secured, therefore, it does make sense to ensure that you have managed to obtain an extensive view of the unsecured personal loans best rates, and the best rates for personal loans. Often the best personal loans are one that not only meets your financial requirements, but also suits your repayment capacity.

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